Promoting debate about Latin America and the Caribbean
View Article  Tackling inequality in Latin America: a report from the OAS Private Sector Forum

This article was first posted in the ODI Blog

 

I’ve been talking about the importance of inequality to everyone in Peru who cares to listen for quite some time now. When I left Peru over six years ago, this ‘inequality’ concept was a term used by a few social and economic researchers with poor communication skills. We had not yet figured out how to explain why it mattered that not everyone benefited from growth in the same way (and at the time we were still in a recession) and resorted to pointing at the persistence of extreme absolute poverty. ...   more »

View Article  Food Crisis: implications and opportunities for Latin America

The first semester of 2008 saw the real price of the main food staples climb to a 30 year peak. The food riots in Haiti and the highly politicized “Sovereignty and Food Security: Food for Life” Presidential Summit held in Managua, Nicaragua on the May 7th have brought issues of trade, international aid and crisis mechanisms to the forefront of the regional political and economic agenda. Growing concern over food security and price vulnerability was clearly reflected by the Summit’s call for a regional production and distribution strategy for fairly priced food as well as for a review ...   more »

View Article  New Latin American trade and poverty programme launches today

Comercio y Pobreza en Latinoamérica (COPLA) aims to use research based evidence to strengthen and promote an improved dialogue between policymakers, researchers and those institutions that represent the poor to incorporate new issues into the policy debate.

 

 A couple of years ago, when the Free Trade Agreement between the US and Peru was still being negotiated, a friend who had worked in the Peruvian Ministry of Trade and had been involved in the negotiations told me that studies about the effects of the agreement on poverty had been commissioned but not been made public. Why? Because they ...   more »

View Article  Chavez Inc Expands to London
Amid announcements that Venezuela’s Hugo Chavez is seeking indefinite terms for the presidency and thereby further undermining what remains of Venezuelan democracy, comes more moves to shore up support from leftist / anti-American leaders the world over… this time, very close to home, in London.   more »
View Article  Tough Times Ahead for Argentina’s Cristina Fernandez de Kirchner

Tough Times Ahead for Argentina’s Cristina Fernandez de Kirchner

Aaron Goldfarb 8 August 2007

After presiding over an impressive fifth year of economic expansion in Argentina, President Nestor Kirchner could have easily won a second term in the upcoming October elections. Instead, Kirchner is stepping aside to let his wife, Cristina Fernandez, seek the presidency. Cristina, who has often been compared to Hilary Clinton, has been a leading figure in the Senate for the past four years. Though her approval rating is not as high as her husband’s, Cristina (as she likes to be known) is still heavily favoured ...   more »

View Article  China’s Growing Presence in Latin America

Costa Rica switched diplomatic relations from Taiwan to Mainland China earlier this month, citing economic reasons as the deciding factor. Costa Rica’s realignment is a small example of how Chinese "checkbook diplomacy" is reshaping Latin American politics. By financing multi-billion dollar infrastructure and public works projects in Latin America, China is receiving contracts for raw materials and foodstuffs that will feed the appetite of its ever expanding economy. On his 2005 tour, President Hu Jintao spoke of a US$100 billion investment in South American infrastructure over the next ten years. Clearly, China is laying the path for a long-lasting presence ...   more »

View Article  World Bank releases governance indicators for Latin America and other regions

The World Bank released its annual “governance indicators” yesterday – a set of six variables which is designed to measure governance globally.  The project has many critics, broadly falling into two camps – those that oppose the idea on principle and argue that the World Bank should not be in the business of rating countries on governance or any other metric, and those that find fault with the indicators methodology, which could accurately be described as a “kitchen sink” approach to measuring corruption, political stability and other categories of governance with surveys and other imprecise metrics....   more »

View Article  US Medical Ship Tries to Mend Broken Relations with Latin America
After US President George W. Bush’s long trip to Latin America this spring, the US has announced a number of very small humanitarian and aid initiatives for the region which appear like buy-offs to the uninitiated. Dedicating just $20 million (the cost of a single day of the continuing Iraqi war), the US has put a large hospital ship off the coast of several Central American cities in an effort to buy popularity. One can’t help but notice how much this mini-mission has in common with the itinerant Cuban doctors working in Venezuela.    more »
View Article  It is not money or experts what Latin America needs: think partners

When DFID withdrew their bilateral programmes in Honduras, Peru and Bolivia, civil society was fast to point out that, among other things, there were many poor Latin Americans who needed urgent assistance. DFID should have stayed to look after them. There are other reasons too for supporting DFID’s direct involvement in Latin American countries. DFID left a space in policy debate that was not filled by other donors (or by the government) and many of the progressive ideas it had supported have suffered to remain in the policy and research agendas.

 

ODI’s mid-term evaluation of DFID’s RAP...   more »

View Article  Biofuels, corn prices and food security in Mexico (by Sitna Quiroz)
Recent announcements from President Bush on prioritising the biofuels agenda have fuelled the debate on the possible implications for developing countries and one of the main concerns is the impact it will have on food security. This issue is of special concern for Mexico, which experienced its first shock in the rise of food prices in January, when the price of tortillas more than doubled. Facing popular discontent, the government’s immediate solution was to authorize the import of 650,000 tons of corn free of tariffs from the US and intervene in the regulation of prices until May, when the new harvests in the North of Mexico are    more »
View Article  Migrant money outstrips aid and investment

The volume of remittances hit the headlines last week on the BBC and One World websites.  The BBC reported that remittances to Latin America are now $62bn, more than aid and foreign direct investment combined. 

This figure has attracted the interest of development policymakers. How, they ask, can remittances be harnessed as an effective development tool? The answer is as yet unknown. What we do know is that the majority of migrants send home small amounts, around $100 to $150 a month.  Charges are incurred per transaction meaning remittances are big business.  One current line of inquiry is what governments ...   more »

View Article  The Juntos programme in Peru: an innovative approach to tackling childhood poverty and vulnerability?
To date, the Juntos programme has been the most ambitious and innovative government attempt at tackling childhood poverty in Peru, a country where two out of three children live below the poverty line and many lack access to basic services. Strange then, that the programme has received so little attention; in fact, debates on child protection in Peru have been more preoccupied with how to punish child molesters and kidnappers and fathers who evade child support than with the state’s responsibility for child well-being. However, according to a recent report to which ODI researchers contributed, Juntos has made ...   more »
View Article  The Politics of Economic Integration: Where does Peru stand in the global context? (LSE, February 26th 2007)

In this conference organised by LSE’s Peruvian Society, speakers reflected on how the new political map of Latin America is influencing Peru’s integration into transnational markets and what this tells us about the opportunities and challenges facing developing countries when interacting in the global economy. Speakers were Dr. Ricardo Luna (Peruvian Ambassador in the UK), Dr. John Crabtree (Centre for Latin American Studies, Oxford University) and Mr. Richard Ralph  (former British Ambassador in Peru (2003-2006) and current chairman of a UK mining company working in Peru). The conference was chaired by LSE’s Dr Evan Killick....   more »

View Article  What impact will China's growth have on Latin American countries?
There has been a surge of recent interest in China’s impact on developing countries, but far more of this discussion has focused on Africa than on Latin America. This is partly because the consequences of China's growth for Latin America are likely to be both more complex and less direct. Unlike Africa, the Latin American resource sector is dominated by large state-owned companies and how these will interact with new Chinese investment is hard to predict. A more developed infrastructure also means China will have less of a competitive advantage in the race to exploit Latin America’s natural resources. In Latin America, there are likely to be both winners and losers, as a recent report by the    more »
View Article  Will he or won’t he? Correa’s game of chicken with Ecuadorian default

Rafael Correa, Ecuador’s new president, has been playing a game of chicken with the international capital markets.  Earlier this week the government announced that it would utilise a 30 day grace period to repay interest on its bonds – in effect, defaulting.  Yesterday, however, the government surprised the markets by making the payment on time. Predictably, the response in the bond markets has been volatility: first a massive selling off of Ecuadorian debt, then a rally.  All of this follows on a campaign promise by Correa to restructure the country’s debt.

 

There are ...   more »

View Article  Surprise! Pemex and PDVSA are the third and fourth largest companies in the world

Attending a conference last week at Chatham House on political risk, I was faced with the most surprising statistic: Pemex and PDVSA are the third and fourth largest companies in the world, respectively.  The presenter, Dr. Harm Bandholz of UniCredit Markets and Investment Banking, informed us that the Mexican and Venezuelan state oil companies were recently ranked by the Financial Times as third and fourth largest companies in the world on the basis of total assets when both state owned and public companies were compared.  This makes both larger than General Electric, and lagging behind only ...   more »

View Article  Notes from Exile: Salinas at LBS
Former Mexican President Carlos Salinas de Gortari (1988-1994) was in London this week giving a talk on NAFTA at the London Business School. The argument of his presentation was that NAFTA was intended to be an instrument to making the Mexican economy more competitive and robust, not an end in and of itself. He presented a number of statistics which demonstrated that Mexico had lost competitiveness in the decade since NAFTA on a number of metrics, and was highly critical of the lack of progress in reforming the Mexican economy further during the Zedillo and Fox administrations...   more »
View Article  Latin America's trade patchwork just got more complex...
The Latin American trading arrangements just got more complex as Colombia and the US moved one step closer to signing a free trade agreement (FTA), despite the US Congress’ increasingly anti-free trade stance. The agreement follows on a raft of recent Latin American free trade agreements including the US – Peru FTA, the US - Central American Free Trade Agreement (CAFTA), which later incorporated the Dominican Republic as a member, and the Chilean – US agreement signed in 2002. The US was also negotiating a free trade agreement with Ecuador until 2006...   more »
View Article  The differences between Evo Morales and Hugo Chavez in a new ODI Opinion

After a year of record gas revenues in 2006, Bolivia has achieved a fiscal surplus for the first time in three decades. In a period in which high oil prices have given Chavez more room to manoeuvre to shift its policy towards nationalisation and authoritarianism (see recent LACG Blog), there is the suspicion that windfall revenues may allow the Morales administration to take the same turn in Bolivia.

 

A new ODI Opinion argues that this is unlikely to be the case and that Evo Morales is actually departing from Chavez-type policy-making, acting more pragmatically and to some ...   more »

View Article  After the demise of Doha and the FTAA, what is the future for free trade in Latin America? (continued from last week)
In last week’s blog, I discussed the collapse the Doha round of trade talks and Brazil’s leading role in these negotiations. This week's blog looks at progress on other free trade agreements in Latin America and asks, who really stands to benefit from trade liberalization? FTAA, bilateral FTAs and regional integration Doha is not the only recent example of trade talks collapsing after failed negotiations. In 2005, the Free Trade Agreement of the Americas (FTAA) floundered over similar issues to Doha: the US was seeking to expand trade in services and increase intellectual property rights, while Latin American countries pushed for an end to agricultural subsidies and freer trade in agricultural goods. Again, Brazil’s role in negotiations was crucial and it’s opposition at the Mar de Plata Summit in January 2005 played a large part in blocking a deal. There is some speculation that reaching a last-minute agreement over the Doha round could pave the way for a revival of the FTAA, but the terms of any negotiations would most likely be very different...   more »
View Article  After the demise of Doha and the FTAA, what is the future for free trade in Latin America?
With collapse of the Doha round, the cancellation of FTAA and the uneven progress on a number of bilateral and regional agreements, the issue of trade in Latin America is hanging in the balance. The future depends partly on the success or failure of last-ditch attempts to revive the Doha round currently being made by Brazil, the US and the EU and several other large developing countries. However, even in the unlikely event of an agreement being reached before July, the progress and nature of free trade agreements (FTAs) in Latin America remains uncertain. Not only is the multilateral trading system in a fragile state, but opposition to FTAs from social movements across the region remains widespread. One thing that does seem fairly certain is that Brazil – a key player in the Doha negotiations - will continue to have a leading role in future trade negotiations in Latin America...   more »
View Article  Elections in Latin America – the way forward
On the 11th Dec, the International Policy Network held a meeting, ‘Elections in Latin America – the way forward’, featuring Paulo Uebel, President of the Instituto de Estudos Empresariais, Brazil. The meeting gave an insight into the current unease felt by proponents of neoliberalism in Latin America and elsewhere, following a year in which left-wing governments have swept to power in a number of Latin American countries. Such discomfort is perhaps not unfounded given that many of these leaders were elected on the basis of their anti-neoliberal rhetoric and promises to implement radical economic and social reform. How investors and corporate interests should respond to this threat and find ‘the way forward’ was the central theme of the discussion.   more »
View Article  Guillermo Perry, World Bank Chief Economist for the LAC region, speaks at ODI.

On 30 October, ODI’s Andrew Lawson (Head of the Centre for Aid and Public Expenditure) interviewed Guillermo Perry on two recent World Bank reports ‘Poverty Reduction and Growth: Virtuous and Vicious Cycles’ and ‘Latin America and the Caribbean’s Response to the Growth of China and India’ and the discussion focused on key development issues in Latin America.  You can read a full meeting summary and listen to a recording of the meeting here and use this space to continue the debates started at the meeting.

   more »
View Article  The role of politics in investment climate: Some thoughts from the Bolivian experience

It was quite surprising to read in yesterday's Financial Times that the Bolivian government is set to approve a US$ 2.3bn bid by two Indian companies (Jindal Steel and Power of India) to extract of one of the world's largest untapped iron ore deposits. The numbers are even more impressive considering this would be the first Indian investment in Bolivia and the largest Indian investment in the whole Latin America.

This news comes shortly after the Bolivian government's decision to nationalise the natural gas sector (the most important commodity in the country), which broke the contracts signed with multinational ...   more »

View Article  Market Reacts to Garcia Victory
Ironic that the markets rallied on the news that Garcia won considering the impact his previous presidency had on the Peruvian economy in the 1980s: cumulative inflation in the five years of his presidency was 2,200,200% (see the FT's article today - 6 June: "Peru markets welcome Garcia election win"). However, with the financial markets, things are always relative...   more »
View Article  Inequality in Latin America
From the IADB' Ethics and Development Newsletter: "Inequality in Latin America: a synthesis of recent research on the levels, trends, effects and determinants of inequality in its different dimensions" by Patricia Medrano, Claudia Sanhueza, and Dante Contreras for the Inter-Regional Inequality Facility The Inter-Regional Inequality Facility exists to promote inter-regional dialogue and knowledge sharing on the issue of inequality...   more »
View Article  Review of Santiso's 'Political Economy of the Possible'

Javier Santiso’s new book Latin America’s Political Economy of the Possible (MIT Press: Cambridge Massachusetts, 2006) is a more thoughtful consideration of current trends in Latin American economics and politics than other commentators have mustered in this fraught year of electoral campaigns.  It is also written with passion and demonstrates an enviable facility with the history, literature and politics of the Latin American region.  However, it doesn’t quite live up to the praise on the back cover from notable academic luminaries.   There are some substantive limitations of the book, and some which are more stylistic.  ...   more »

View Article  Pricing in Politics? What recent financial market losses signal about political risk in Latin American economies
Yesterday global financial markets faced their worst sell of since the Russian default and Asian crisis of 1997-98. The Brazilian and Mexican stock markets – two of the largest in the developing world – closed massively down, as did those in Turkey, Russia, Indonesia and India (“Emerging markets lead global decline” 22 May and “Equities tumble worldwide” 23 May, both www.ft.com ) . What are the implications for this renewal in financial market volatility? What will its impact be on Latin American economies and polities?   more »
View Article  "Wrong left", "right left" and commodity boom in Latin America
Some commentators of current Latin American political issues (see for example the article by Jorge Castañeda in the last number of Foreign Affairs) have recently focused their attention on the distinction between two types of left emerging in the continent: a populist extremist left and a social-democratic moderate left. The populist left, exemplified by Chavez, Kirchner, Morales, Humala and López Obrador, which Castañeda defines as the “wrong” type, would only be driven by its interest in holding tightly the reins of power with no real interest in the development of their countries. On the other hand the moderate social-democratic left, the “right” left, represented by Bachelet, Lula and Vázquez, would be involved in more responsible and sustainable policy-making.    more »
View Article  New Resource on Latin America from Overseas Development Institute

ODI’s recently formed Latin American and Caribbean Group consists of ODI researchers with a wide variety of interests in, and experiences of, Latin America.  In particular, Enrique Mendizabal carries out research on civil society and networks, Lauren Philips on financial markets and Alina Rocha Menocal on governance.  You can view members of the group here http://www.odi.org.uk/lacg/pages/who_we_are.html.

 

We have set up a website which will be built up over the next few months to contain a wealth of resources on economics, politics and civil society as well as blogs, events and links http://www.odi.org.uk/lacg/

 

We hosted a ...   more »

Login
User name:
Password:
Remember me 
www.flickr.com
This is a Flickr badge showing public photos from LAC Group at ODI. Make your own badge here.
BloGalaxia Global Voices Online - The world is talking. Are you listening? Subscribe with Bloglines

Rate Me on BlogHop.com!
the best pretty good okay pretty bad the worst help?